S&P gives Toll Brothers notes BB+

S&P said it assigned a BB+ issue-level rating to Toll Brothers Finance Corp.'s proposed senior unsecured notes due 2028.

The 3 recovery rating indicates an expectation of meaningful (50%-70%, rounded estimate: 65%) recovery in the event of payment default.

The agency said it expects the company to use proceeds from the issuance for general corporate purposes, which may include terming out some short-term borrowings.

S&P said the rating on Toll Brothers reflects the company's leading position in the fragmented, cyclical U.S. luxury housing market, as well as credit measures that are commensurate with the rating pro forma for the issuance, with year-end 2017 debt to EBITDA of about 3x and debt to capital of 40%.

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